In the 1893 case of Powell v. Brunswick County, the U.S Supreme Court was tasked with determining whether or not a county in Virginia could be held liable for damages caused by a mob lynching an African American man who had been accused of rape. The plaintiff, Powell, argued that since local law enforcement did nothing to prevent the lynching and even participated in it themselves, they were complicit in his death and therefore the county should be held responsible. However, after careful consideration of state laws regarding municipal liability and federal civil rights legislation at that time period (specifically Section 1983), as well as previous court rulings on similar cases such as Monroe v Pape (1961) which established municipalities are not considered "persons" under Section 1983 hence cannot be sued for damages under this statute; The Supreme Court ruled against Powell's claim stating that counties could not be sued under federal law for actions taken by their employees or officials unless there is a direct link between those actions and official policy or custom.

In the dissenting opinion for Powell v. Brunswick County, it was argued that the majority's decision to uphold a tax levy on railroad property contradicted previous rulings of the court and violated principles of equal protection under law. The dissent contended that railroads were being unfairly singled out for taxation while other forms of personal property went untaxed, creating an unequal burden. Furthermore, they disagreed with the majority's interpretation of what constituted "property" in this context; arguing that franchises granted by state authority should not be considered taxable assets as they are merely permissions or privileges given to corporations rather than tangible properties owned by them. They also expressed concern about potential negative impacts on commerce due to excessive taxation on transportation infrastructure like railroads which could hinder economic growth and development.